Over the five year period between 2006 and 2011 the US hair care market experienced a negative compound annual growth rate (CAGR) of 3 percent.
According to market researcher Companies & Markets, this was down to poor economic conditions leading consumers to trade down to less expensive products and generally cut back on discretionary expenditure.
However, the tide is turning for the US hair care market, as it is now forecast to rebound through to 2016, and is expected to increase at a CAGR of 1 percent in constant value terms, to be worth $10.5 billion.
Go back five years to 2007, and the total expenditure on hair care products per capita in the US stood at US$34.
By 2010, this figure had slipped to US$32, as consumers cut back on non-essential spending. Including inflation, per capita spending is anticipated to return to pre-recession levels by 2016.
The Companies & Markets report states that L'Oréal USA and Procter & Gamble were the leading players within the US hair care market during 2011, controlling 24 percent and 22 percent value shares respectively.
Pantene (P&G) remained the single largest brand in hair care in 2011, owing to a diverse product mix and superior distribution in mass channels.
Within the lucrative shampoos category, P&G’s Head & Shoulders remained the leader, recapturing the leading position in 2008 and defending this share again in 2011, despite a 2 percent decline in value sales to $270 million.
Speaking of hair care…
Hair colouring and dyes, hair loss and thickening, and a market overview will all be topics of the editorial webinars at the upcoming HairCare Ingredients 2012 – the industry’s first virtual hair care event taking place on September 19th 2012.
To register and find out more, click here